Nigerian Economy Research Articles

Is climate change hindering the economic progress of Nigerian economy? Insights from dynamic models

This study investigates the link between climate change and economic growth in Nigeria from 1961 to 2022. To provide a robust analysis that facilitates a nuanced examination of this dynamic relationship, this study employs state-of-the-art econometric approaches, including autoregressive distributed lag (ARDL), fully modified least squares (FMOLS), novel quantile autoregressive distributed lag (QARDL), and time-varying causality. The empirical results of this study are as follows: (1) the impact of climate change on economic growth is not felt in the short run. However, climate change negatively influences economic growth in Nigeria in the long run, (2) the elasticity of climate change increases across the conditional quantile economic growth, (3) unidirectional causality from climate change to economic growth across different time dimensions. These empirical outcomes advocate for a proactive and adaptive policy framework, emphasising the need for the Nigerian government to adopt climate-smart policies.

Characterization of wild lactic acid bacteria for industrial applications

For some decades now, Lactic acid bacteria (LAB) have been an important raw resource in the food and pharmaceutical industries to produce variety of dairy based products including but not limited to cheese, yoghurt, lactic acid. drugs and cosmetics. The LAB strains include the genera of Lactobacillus and Streptococcus. The importation of raw materials such as lactic acid, which can be obtained from indigenous sources, however, affects the foreign exchange of Nigeria's economy greatly. This study was designed to screen, characterize and identify LAB for industrial applications. A total of eighty (80) Lactic Acid Bacteria (LAB) strains were isolated from samples of nunu (a locally fermented milk product) using basic microbiological procedures such as morphological/phenotypic, gram staining, and other biochemical tests. All the isolates were tested for their acidification, curd formation and aroma production abilities. After forty-eight (48) hours of incubation at 420C, twenty-three (23) isolates which satisfied established phenotypic and biochemical criteria were selected for further functional tests. Out of the twenty-three (23) isolates obtained, two (2) strains L53 and L12 had additionally high exopolysaccharide production ability and correspondingly produced yoghurt with high viscosity and very low residual content. Based on the remarkable characteristics obtained from these two species, they are therefore recommended for optimization and proposed for large scale utilization as starter cultures in the dairy industries.

The Impact of Digital Innovation on Economic Growth in Nigeria

In view of this research, we have examined the important impacts of digital innovation on the Nigerian economy, with a focus on the use of information and communication technology (ICT) in the country. In especially in the rural areas, the National Policy on Information and Communication Technology has been crucial in restoring the health of technological platforms like power and broadband networks. One of the main initiatives is the promotion of legislative changes, with additional objectives aimed at helping companies and enterprises and improving assistance for new comers. Business sectors, including agriculture, production, healthcare, and finance, have felt the effects of digital transformations, which have led to Furthermore, the article analyses the role of social connectivity, the digital divide, and the development of communities. Benefiting from a young and technologically literate population in Nigeria, the growth of the technology sector has led to significant employment opportunities. The growth of the technology sector has resulted in significant employment opportunities. However, there are still challenges that remain unsolved, and this article proposes comprehensive solutions to address these concerns, including educational programmes, public awareness campaigns, and financial vestments. We utilized relevant published data (2004–2014) from diverse, reliable databases. This review has examines the potential of digitization to propel economic growth in Nigeria. Findings suggest that it’s crucial for the government, private sector, and non-profit organisations to foster a mutually beneficial partnership to ensure the equitable distribution of these benefits throughout the country. Ensure that the benefits of digitization are distributed equally throughout the country. Keywords: Digital Innovation, Economic Growth, ICT Integration, Entrepreneurship, Startup Ecosystem, Social Connectivity, Nigeria.

Enhancing The Quality Of Agricultural Technology Education In A Developing Economy

The development and transformation of Nigerian agriculture vis-a-vis the development of Nigerian economy has been the utmost concern of government. researchers and many individuals. Most developed and developing countries of the world have long realized that the only way to meet adequate diet and food demand of their people is by acquiring functional literacy, knowledge and skill for productive activity. Education policies in Nigeria have often focused on raising aggregate enrolment figures, training more teachers and building more schools, paying attention to the lopsidedness in the geographical distribution of educational facilities across the nation for the sake of social justice and equity. However, until recently, conspicuously absent n most planning efforts in Nigeria s the concern for the quality and relevance of our educational training towards National development. It is against this background that attempts is made by this paper to raise some basic issues relating to Agricultural Technology Education, this is with a view of establishing a basis for understanding the problem and indicate possible directions for policy making. Keywords: Quality, Agricultural Technology, Education, Developing Economy, Schools, Building

Human capital investments and income inequality in Nigeria: Does institutional quality matter?

The study examines the impact of human capital and institutional quality on income inequality from 1990 to 2021. This study adopts the Kuznets model as its theoretical framework. The unit root test revealed a mixed stationary in the variables which prompts the choice of Autoregressive Distributed Lag of which its bound test result shows that there is a cointegration in the variables. The long-run results show that government expenditure on education, government expenditure on health, government effectiveness, and domestic credit to the private sector have a positive but not significant effect on income inequality while in the short-run, government effectiveness and domestic credit to the private sector have a positive but not significant impact on income inequality. Moreover, only government expenditure on education affects income inequality in the Nigerian economy positively and significantly. Based on the findings revealed, the study recommends that the government should by all means and economic resources increase the budget of human capital to enhance the reduction of income inequality in the country and place more emphasis on providing education grants and incentives that encourage the reduction of brain drain.

The Influence of Organisational Justice on Employee Performance in the Organised Private Sector of the Nigeria Economy

This study examined the Influence of Organisational Justice on Employee Performance in the Organised Private Sector of the Nigeria Economy. This study employs a quantitative research design, using a survey approach to collect data from 107 Respondents from the Organised Private Sector. The questionnaire was administered online, and participants were invited via email and social media. The analysis revealed a significant positive correlation (r = 0.674, p < 0.000) between distributive justice and employees' performance. This indicates that when employees perceive that outcomes and rewards are distributed fairly within the organization, their performance improves. Also, Procedural justice showed an even stronger positive correlation with employees' performance (r = 0.718, p < 0.000). This suggests that when employees believe that the processes and procedures used to make decisions are fair, their performance is significantly enhanced. Interactional justice also had a significant positive correlation with employees' performance (r = 0.681, p < 0.000). The study recommended that organizations can improve employee performance by putting in place fair and transparent remuneration structures, assessing and modifying reward programmes regularly to align them with market norms and employee contributions, and creating recognition initiatives that honour and recognize staff members for their efforts and accomplishments.

Perceptions of Public and Private Sector Stakeholders on the Benefits and Challenges of Public-Private-Partnerships in Nigeria

Nigeria’s infrastructure deficit has become acute because of the country’s burgeoning population. The Public-Private Partnership (PPP) model, under labels such as Private-Finance Initiative (PFI) and Build Operate-Transfer (BOT), has been touted as the solution to the funding and other challenges confronting the country with regard to infrastructure development. This research sought to examine stakeholder experiences and perceptions on the benefits, abuse and challenges of deploying PPP for infrastructure procurement. The stakeholders investigated were in Lagos and Ogun States of Nigeria, although some of the experiences transcended the two states. Copies of the questionnaire were purposively administered to 115 professionals drawn from the built environment as well as from the legal and financial sectors of the Nigerian economy; the professionals were from the private and public sectors. Eighty-six (86) copies of the questionnaire were returned, with the data subjected to descriptive and inferential statistical analyses. Ranking highest among the list of thirteen identified challenges investigated was ‘political interference outside the agreed rules of running the PPP framework’, while ‘inability to initiate or package PPP projects’ ranked least. The most significant form of abuse or disadvantage was ‘embezzling of public funds and reinvesting in PPP as private sector investor’, while the least significant form of abuse was determination of the concession period. The inferential statistical analyses found no significant difference between both sectors in the assessment factors except in the matter of ‘more careful approach in investing funds in infrastructure’. It is therefore recommended that there should be a continuous audit of stakeholder perceptions on various PPP issues that can form the baseline for impactful improvement and intervention in PPP projects.

Circular Economy and Sustainability in Nigeria: Opportunities and Challenges for Development

Circular Economy and Sustainability in Nigeria: Opportunities and Challenges for Development

An assessment of convicted cryptocurrency fraudsters

ABSTRACT We examine cryptocurrency fraud cases prosecuted by Nigeria's Economic and Financial Crimes Commission (EFCC). We considered the lens of the Space Transition Theory (STT) in exploring the dynamics of these digital crimes. Our data analysis reveals common types of fraud, including cryptocurrency investment schemes. The results show an exclusive male demographic (100%), with the majority under 30 years old and only a quarter possessing a degree, providing insights into the socio-demographic characteristics of cryptocurrency fraudsters. Additionally, while most fraudsters (55%) targeted victims in the United States, Bitcoin, leveraging blockchain technology, was the most commonly used method (46%) for cryptocurrency fraud. Our examination of the methods and mediums used for cryptocurrency fraud supports some aspects of STT, while others do not. We advocate for a multifaceted strategy that prioritises stringent regulation, implementation, and heightened scrutiny of digital currency ecosystems in Nigeria and beyond. This study contributes to the broader discourse on cybercrime prevention and enforcement by emphasising the novel methodological approach utilised.

Insurance Services, Sustainability, and Transformation of Businesses in the Nigerian Informal Sector: A Conceptual Review

ABSTRACT This study explores the impact of insurance services and the sustainability of businesses in the Nigerian informal sector. The analysis relies on extant literature sourced from various sources to develop an understanding of the current trends of insurance services in the Nigerian informal sector and develop a suggested model for improved insurance service delivery in the Nigerian informal sector. Findings show that stakeholder commitment is necessary for better impact of insurance services in the sector. The conclusion emphasizes the possibility of business sustainability through consolidated insurance services among stakeholders in the sector. Part of the suggestion for further research is the need for a wider focus on insurance practices both in the formal and informal sectors of the Nigerian economy. This is coupled with an exploratory view on the impact of policy development on insurance support to business activities in the Nigerian informal sector.

Exploring the impact of oil revenue on Nigeria's economic growth: A non‐linear autoregressive distributed lag model

AbstractThe influence of oil proceeds on an economy remains a subject of debate among scholars. Most scholars agree that income from oil has direct effect on economic expansion. We explore the impact of revenue from oil on economic growth in Nigeria from 1986 to 2016. Data were collected from the Nigerian Central Bank and the World Data Indicators. We employed a non‐linear autoregressive distributive lag approach to analyse the data. The outcome exposes a direct and significant association between revenue from oil and GDP both in the short and long term. Trade openness exhibits a significant negative effect on GDP from both short‐ and long‐term perspectives. Gross capital formation directly influences GDP in the short and long run, with significant impacts primarily in the long term. The study suggests that revenue from oil has a direct and significant impact on the Nigerian economy during the period from 1981 to 2016. We recommend that the Nigerian government create a conducive environment for private investment to thrive, thereby sustaining the nation's growth potential. Additionally, the government should wisely utilise revenue from oil to revitalise non‐booming productive sectors in the economy, thus diversifying revenue sources.

A Co-Integration Approach to Assess the Impact of Nigeria Monetary Policy on Economic Growth

This research examines the impact of Nigeria’s monetary policy on her economic growth by developing a model that is able to investigate how monetary policy of the government has affected economic growth through the adoption of multi-variable regression analysis. GDP representing economic growth which was used as the dependent variable against the explanatory variables which is Monetary Policy Variables: money supply, exchange rate, interest rate, and inflation rate. The time series data is the market-controlled period covering 1960-2020. The study determined the relationship between monetary policy instruments and GDP, and it also determined the adequacy of the model. The study adopted a co-integration approach and also conducted a unit root test. The study showed that monetary policy variables included in the model has combined significant impact on GDP in Nigeria. In addition, the core finding of this study showed that exchange rate and money supply have positive and statistically significant relationship with GDP in Nigeria. However, inflation rate has negative impact on GDP and a non-statistically significant relationship with GDP, interest rate has positive and statistically insignificant relationship with GDP. The results from the study proved that monetary policy have a significant relationship with GDP. In conclusion, based on the outcome of the Study. The study recommended among others that the regulatory authority (CBN) is advised to reduce interest rates and increase money supply such that both loans and funds will be easily accessed by manufacturing/industrial outlets to enhance manufacturing output in the Nigeria economy.

An Evaluation Of The Treasury Single Account (TSA) As An Instrument Of Financial Prudence and Management In Nigeria: Methodology Analysis (OAGF) 2015-2024.

This paper examines the Office of the Accountant General of the Federation and the relationship between the Nigerian economy and the Treasury Single Account Policy (2015-2024). The Nigerian economy has developed slowly over the years, which has led to little to no improvement in the country's residents' standard of living. The study's overall goal was to determine how the Treasury Single Account Policy affected Nigeria's economic developments between 2015 and 2024. Its specific goals were to determine whether the human development index, Gini coefficient, and poverty rate of the country's economy differed significantly between the pre-and post-implementation periods. The research utilized the design of the quantitative study. Nigerian citizens make up the study's population, while the citizens of Nigeria for the years 2015–2024 make up the sample size. The study employed secondary data that came from the World Bank's National Accounts Data, the National Bureau of Statistics, and the Central Bank of Nigeria's Statistical Bulletin. The paired sample t-test was used to assess the data. The outcome showed that, except the variable of human development index, which showed a significant difference between the periods before and after the implementation of the treasury single account policy, economic development indicators (gini coefficient and poverty rate) did not differ significantly between the periods before and after the policy. Consequently, the analysis found that the Treasury Single Using the poverty rate and Gini coefficient as stand-ins for economic development, account policy had no discernible effect on the Nigerian economy. Additionally, it was determined that the Treasury Single Account Policy had a major influence on Nigeria's economic development using the Human Development Index as a proxy for economic progress. Therefore, it was advised that government programs for human development be maintained and improved, particularly in the fields of health and education.

Renewable Energy Consumption and Economic Growth in Nigeria Nexus

With rising rates of globalization, increasing climate change and economic growth, energy usage and energy security, governments are paying more attention to the impact of renewable energy consumption on the economies. The paper examines the relationship between renewable energy consumption and economic growth in Nigeria using a time series data from 1996 to 2021. The results of the unit root show mixed stationarity from our variables which result in the usage of ARDL technique of analysis. The long run results show that renewable energy was negative and significant thus, validates the conservative hypothesis. C02 was also negatively significant to RGDP while labor force was positively significant. The ECM shows 77% adjustment level backs to equilibrium. Granger causality test validated the feedback hypothesis of no causality among the renewable energy and the Nigeria economy.

Analysis of Private Sector Investment on Economic Growth in Nigeria

The study examined the effect of private sector investment on economic growth in the liberalised Nigerian economy 1990 to 2021. The data for this were analysed using descriptive and analytical tools. The study employed Auto-regressive distribution lags model (ARDL) estimation technique based on the unit root test to determine the effect of four major factors; Loan and Advances (LA), Interest rate (INTR) Exchange rate (EXR) and Inflation rate (INFR) on real gross domestic product (RGDP) which proxies economic growth. Findings revealed that there is negative and significant impact of Interest rate (INTR) Exchange rate (EXR) and Inflation rate (INFR) on economic growth in Nigeria. The study thus concludes that, by improving and strengthening private sector investment, economic growth would be enhanced in Nigeria. The study therefore recommends that in order to boost economic growth in Nigeria more emphasis should be placed on encouraging private investment through domestic and foreign financing.

The Impact of the Oil Industry on the Economic Development of Nigeria

The study examined the impact of the oil industry on the economic development of Nigeria. The Nigerian petroleum industry dominates the Nigerian economy in terms of profits and revenue. According to the recent Petroleum Export Organization (OPEC) report, Nigeria currently ranks as the world's tenth-largest crude oil reserves and also the world's fifteenth crude oil producer. According to national statistics, the industry generates for the country more than 95% of the country's external revenue and about 80% of government revenue. Secondary data collected on the economic variable used in the study comes from the World Bank, worldometer, and the International Monetary Fund, Statistical Review of World Energy, Central Bank of Nigeria (CBN) Statistical Bulletin, CEICDATA (Organization of the Petroleum Exporting Countries) from 1990 to 2016. An augmented Dickey-Fuller unit root test, and autoregressive distributive lag (ARDL) method, and ARDL related to the test co-integration with various other diagnostic techniques were used for the study. The result reveals that oil production contributed to economic development, but the consumption and export of crude oil did not contribute to the improvement of the Nigerian economy. The study concluded that the government should implement policies that would encourage the private sector to actively participate in the crude oil sector and sectors of the economy. In addition, the government should use the revenue generated from oil to invest in other national sectors such as agriculture and manufacturing to expand the revenue stream of the economy

Quantitative Analysis of Agricultural Programmes’ Effectiveness in Reducing Unemployment Rate in Nigeria

Unemployment remains a pressing issue in Nigeria, with a significant portion of its population unable to secure sustainable employment opportunities. In recent years, agricultural programmes have emerged as potential solutions to address the challenges of unemployment. This study explores the effectiveness of agricultural programmes in reducing unemployment rate in Nigeria. The agricultural sector in Nigeria holds immense potential for job creation, considering the country’s vast arable land, favourable climate, and agricultural resources. However, the sector has been underutilized and faced numerous challenges, leading to high unemployment rates. Agricultural programmes have garnered attention as they aim to revitalize the sector, promote sustainable farming practices, and create employment opportunities for the burgeoning youth population. Consequently, the paper examines the impact of key agricultural programmes such as the Commercial Agriculture Credit Scheme (CACS), Agricultural Credit Guarantee Scheme (ACGS), Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), and FADAMA, introduced by successive Nigerian governments at various times in reducing the unemployment rate in the country. Some of these programme though new, are just a transmutation from older ones, with the operations remaining the same. These programmes have demonstrated positive impacts in several ways according to statistics; contributing to the diversification of the economy of Nigeria and reducing the country’s heavy reliance on oil revenue. The question is, how effective have these programmes been in reducing the unemployment rate? Therefore, the paper’s main objective was to analyse how successful these programmes have been in checking the problem. The study uses the Logit model to investigate the effectiveness of these key Agricultural programmes in curbing the unemployment rate in the country. Data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) were used in the analysis. The results reveal that, of the four prominent programmes introduced by the government based on participants employed, the Commercial Agriculture Credit Scheme (CACS) had the likelihood or greater probability at reducing the unemployment rate in the country. The study, consequently, concludes that, subsequent programmes should be designed according to the operations and modus operandi of CACS and that other programmes should either be upgraded to CACS module or be scrapped since their impact on reducing unemployment is not felt.

A review of Green hydrogen production and the obstacles to hydrogen green economy

The Energy sector, a significant contributor to greenhouse emissions due to its reliance on fossil energy sources, is on the brink of a significant transformation. However, there is hope on the horizon. Hydrogen is leading the charge in the energy industry's decarbonisation processes with its cleaner and more sustainable features. The adoption of Hydrogen could pave the way for a global energy transition towards a carbon-neutral society. Green Hydrogen, in particular, holds immense promise. It can facilitate the shift to clean and renewable energy while ensuring the reliability and sustainability of power grids, inspiring a sustainable and carbon-neutral future for the energy industry. Moreover, Hydrogen, with its potential to displace fossil fuels in various industries as an energy source, has sparked a growing demand for hydrogen supply chain management structures. This versatility is the recipe for economic development. However, there are significant obstacles to implementing a cleaner Hydrogen economy in Nigeria, such as the high production costs of green Hydrogen and the need for substantial development of specific technologies. This review article will delve into these obstacles and assess potential solutions.

EFFECTS OF FINANCIAL INCLUSION ON POVERTY REDUCTION, SAVINGS AND NIGERIA ECONOMIC GROWTH: 1980 -2022

This study examined the financial inclusion and Nigerian economic growth for the period 1980-2022. The study considered the following three objectives; to examine the significant impact of financial inclusion on the Nigerian economic growth, evaluate the impact of financial inclusion on poverty reduction in Nigeria and to ascertain the impact of financial inclusion no savings growth in Nigerian economy. Secondary time series data were used to carry out the empirical analysis. The study employed the aid of vector error correction model (VECM) approach, Augmented Dickey-Fuller (ADF) and Phillips-Perron tests, Co-integration Test and ECM. Based on the above econometric and statistic techniques conducted, it was observed that financial inclusion has significant positive impact on the Nigerian economic growth. Our results indicated that financial inclusion has significant positive impacts on poverty reduction in Nigeria. Furthermore, the result reported that financial inclusion has significant positive impact on the Nigerian savings growth within the study period (1980-2022). These empirical results do support that; One percent decrease in the interest rate (ITR), inflation rate (IFR) and exchange rate (EXR) at lag (-2) will lead to [31% (ITR)-2), 53%(IFR)-2), and 8%(EXR)-2)] increases on the aggregate saving (ASE) Nigeria economy. One percent increase in the financial inclusion proxy by; deposit from the rural areas (DRA), loan to rural areas (LRA), account owners of any type (AA) and electronic money banking/payment system (EMB) at lag (-2) will lead to [38%(DRA)-2), 29%(LRA)-2), 59%(AA)-2) and 03%(EMB)-2)] increases on Per capita income (PCI) respectively in Nigeria. Based on these findings, the researcher recommends that; Nigeria governments should fund financial inclusion programs preferring financial literacy as a national strategy for financial inclusion because it is relatively cheaper to educate the population about financial management and the benefits of using formal financial services. Stable electricity supply to drive the infrastructural facilities provided by banks, telecommunication companies and other related service providers such availability and affordability of financial services in Nigerian monetary authority (CBN) should increase the number of formal account ownership by building up trust securities in financial institutions operation in Nigeria, remove all obstacles for account ownership such as income and age bracket bias, distance in location and education discrimination in the delivery and use of financial services

Association Between Government Expenditures, Inflation and Interest Rate in Nigeria

The study analysed the relationship between government expenditure, economic growth, inflation and interest rate in Nigeria. The high inflation and interest rate with high government expenditure has been a problem for the Nigerian economy. Secondary data from 1986 to 2022 were collated from the Central Bank of Nigeria Statistical Bulletin and analyzed using multiple regression analysis. The results showed a positive relationship between inflation rate, government expenditure and Gross Domestic Product (GDP). This means that as inflation and government expenditure increased, real gross domestic product (GDP) would increase while there existed an inverse relationship between interest rate and gross domestic product (GDP), which implies that as interest rate increased, GDP would decrease. The test for the model fitness using adjusted R2 indicated the predictor values accounted for 95 per cent variations in the dependent variable (GDP). The study therefore recommended that monetary and fiscal authorities should regulate government expenditure by targeting a contractionary fiscal policy which decreases the amount of government expenditure in a bid to tackle inflationary trends. The government should aim at inflation targeting through a single-digit interest rate which could encourage the private sector to accumulate funds to be used to augment government efforts in regulating stability in the economy. Besides, even though the structural inflation facing the country did not have a very significant effect on the domestic economy concerning government expenditure and its impact on GDP, this should be resolved by dismantling all rigidities and bottlenecks such as the war against insecurities and herdsmen that have been distorting farming and agricultural output in Nigeria of late.